The Federal HousingrnFinance Agency (FHFA), conservator of Freddie Mac and Fannie Mae (thernEnterprises) has established its final housing goals for the Enterprises inrn2010-2011. FHFA is required by thernHousing and Economic Recovery Act of 2008 (HERA) to set such goals for targetedrnsegments of the mortgage market
The new rulesrnestablish three goals for single-family, owner-occupied home purchases; one forrnlow-income families, another for very low-income families, and a third for familiesrnliving in geographical areas with lower-income populations, areas with highrnconcentrations of minority residents, or federal declared disaster areas. The goal for disaster areas contains arnsub-goal to ensure that the needs of lower-income and minority areas arernaddressed. A goal has also beenrnestablished for those low-income families who are refinancing single-family,rnowner-occupied mortgages.The preliminaryrngoals were published for comment on February 26. The permanent goals did not change forrnlow-income and very low-income home purchase mortgages; however, the final goalrnfor low-income refinances has been adjusted downward, reflecting recent marketrnconditions.The benchmarks forrnthe four single-family goals are expressed as minimum goal-qualifying mortgagernshares of home purchase or refinance mortgages acquired by the Enterprises. They are:HERA requires thatrnFHFA consider seven factors in setting the single-family housing goals:The final multifamily goals reflect the current marketrnconditions and are lower than those proposed initially:As was the case withrnthe proposed rule, the final goals prohibit credit for purchase of mortgages inrnprivate-label securities including commercial mortgage-backed securities, andrnrevise the counting treatment for loan modifications by allowing credit underrnthe low-income refinance goal for permanent Making Home Affordable loanrnmodifications.FHFA said it expectsrnthe Enterprises to continue to fulfill their core statutory purposes includingrntheir support for affordable housing but does not intend for that they shouldrnundertake uneconomic or high-risk activities in support of the goals.All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.
